A new research study released last week by the Massachusetts Institute of Technology (MIT) initially found that Uber and Lyft drivers earn a median pretax profit of $3.37 per hour, and nearly a third of them are actually losing money, NPR reports. A revised version of the analysis found higher per hour earnings closer to $10 per hour, but around half of the 1100 drivers surveyed still made less than minimum wage in their state even with those revised numbers.

Drivers' median earnings amounted to $0.59 per mile driven, but median expenses came out to $0.29 per mile driven, according to the study's original findings. Those costs include vehicle maintenance and repairs, fuel, insurance, and depreciation of the vehicle. An Uber spokesperson disputed the study's findings, citing studies that have found higher per-hour net earnings for ride-hailing drivers. The company also posted its own analysis of the study, questioning some of its underlying methodology. Over the weekend, the study's authors told Reuters that they would revisit their analysis in light of some of the questions raised by Uber. After re-running their analysis using a couple of different methodologies, the lead author said the researchers found higher earnings between $8.50-10 per hour after expenses, but a sizeable chunk of drivers still made less than minimum wage with those numbers. A Lyft spokesperson told Business Insider Intelligence that the updated findings are still lower than its drivers' actual earnings.

Driver retention has been an ongoing problem for ride-hailing companies, and that is likely to continue for the foreseeable future. One study released last year found that only 4% of Uber drivers stay with the job for more than a year.

Uber and Lyft both say their driver positions are not meant to replace full-time work, and are intended to serve as a side gig or temporary employment for those in between jobs. About 80% of the respondents to MIT's survey said they drive fewer than 40 hours a week. However, both have also been working hard to keep drivers longer — Uber introduced tipping last year, along with paying drivers for some waiting times and canceled rides, and Lyft launched a program to give drivers discounts on online GED and college courses.

However, the high costs of driving for these services and lack of benefits like healthcare mean that Uber and Lyft will likely continue to see high churn rates, requiring them to spend heavily on bonuses for recruiting new drivers.

This post has been updated to reflect ongoing developments to this story.

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